China Theory on Plunge

Special to the New York Times

Published: October 22, 1987

BEIJING, Oct. 21—
China, in its first comment on the collapse of world stock prices, said today that the drop was an inevitable consequence of the ''casino economy'' in the United States. Pu Shan, the director of the influential Institute of World Politics and Economy, said that the plunge of prices on the New York and other world exchanges had been expected for some time. His remarks were quoted in the English-language China Daily.